Rediscovering the Fund of Hedge Funds

Funds of hedge funds, which fell out of favor in the wake of the financial crisis and the Bernie Madoff scandal, are starting to find their footing.

Funds of hedge funds, which fell out of favor and struggled following the financial crisis and the Bernie Madoff scandal, have started to find their footing as more investors decide they make some sense. This is especially true for larger outfits, such as Blackstone Group, Goldman Sachs, and SkyBridge Capital.

But despite encouraging signs for these funds, it's nowhere near the boom years of 2002 to 2007. In 2002, those funds doubled...